Overtime Rules tell payroll when to pay time-and-a-half, double-time, or any other premium for hours that cross a threshold. Think of them as the "after 40 hours a week, multiply by 1.5" calculation, plus any extra rules your state, contract, or policy adds on top.
Rules come in two layers. A Rule Set is a named bundle — "Texas Standard OT," "California OT," "Union Local 42 Contract." Inside each set, individual Rules spell out the specific triggers (weekly hours, daily hours, consecutive days, weekend, holiday) and their multipliers. Bundling rules into sets lets you apply the same set to many employees, or swap a set out without editing every rule.
Where to find Overtime Rules
From the left sidebar choose HR & Payroll, then Overtime Rules.
The page has two tabs: Rule Sets (the named bundles) and Rules (the individual triggers inside a set). The button changes with the tab — Add Rule Set on the Rule Sets tab, Add Rule on the Rules tab.
Rule Sets
A rule set groups the overtime rules that belong together — typically by state, contract, or company policy. Give it a name and a source (federal, state, union contract, or company policy), then add the rules that make it up. include GO ships with a starter set, Texas Standard OT, as an example.
Rules
A rule is one overtime trigger and its multiplier. Each rule defines:
| Part | What it means |
|---|---|
| Trigger | What sets it off — weekly hours, daily hours, consecutive days, weekend, or holiday. |
| Threshold | The point it kicks in — e.g. after 40 hours in a week, or 12 in a day. |
| Multiplier | The premium — 1.5× for time-and-a-half, 2× for double-time. |
For example, the Texas Standard OT set contains a weekly rule (over 40 hours → 1.5×) and a daily rule (over 12 hours → 2×).
Adding and editing
On the Rule Sets tab, click Add Rule Set to create a bundle. On the Rules tab, pick the set and click Add Rule to add a trigger to it. Right-click a row for its actions.
How Overtime Rules connect to the rest of the app
- Payroll. When time is processed, the applicable rule set decides which hours earn a premium and at what multiplier. See Payroll.
- Pay Rates. The premium is applied on top of the employee's pay rate.
- Compliance. Encoding state and contract rules here keeps overtime calculated consistently and correctly.
Permissions
Viewing requires HR view access; creating and editing rule sets and rules require the manage permission.
Tips & best practices
- One set per scenario. Keep a clean set per state, contract, or policy so you can apply or swap them without untangling rules.
- Match the source. Tag each set with where its rules come from (federal, state, union, policy) so it's clear why a premium applies.
- Check thresholds against the law. Daily and consecutive-day rules vary by jurisdiction — set them to your actual obligations.
Common questions
Why two layers (sets and rules)? Sets let you reuse and swap a whole group of rules at once; rules are the individual triggers inside. It keeps overtime manageable when different crews follow different rules.
Where do I set "after 40 hours = 1.5×"? As a weekly hours rule, threshold 40, multiplier 1.5, inside the rule set you're applying.
Can different employees follow different overtime rules? Yes — that's what rule sets are for: apply the right set to the right people.
Related topics
- Payroll — where overtime rules turn hours into premium pay.
- Pay Rates — the base pay the premium multiplies.
- Pay Classifications — the work types behind the hours.